A fundamental strength of port authorities is leadership in developing innovative project financing.

Special Financings, Projects, and Programs

Revenue Bonds: Port authorities may provide conduit financing in the form of revenue bonds. These bonds are based on the credit worthiness of the borrower and backed by a letter of credit from a financial institution. The proceeds of the revenue bonds may be used for public facilities or properties to be owned by the port authority. Examples of these financings include Empowerment Zone Tax Exempt Bonds, Tax Increment Financing Bonds, and Tax Exempt Industrial Development Bonds.

Project Incentives: Port authorities may act as the central point of contact, investigating and procuring local, state and federal business-retention and expansion incentives.

Grant Programs: Ohio’s port authorities may apply for local, state, and federal grant funds, which generally are used for public infrastructure improvements made in support of local economic development efforts.

Common Bond Fund Programs

These programs provide credit enhancements and long-term, fixed-rate loans that make it possible for companies to access capital markets which may not otherwise be accessible. The common bond fund programs are a tool that supplements the financing options available to small- and medium-sized companies within the community.

Lease Financing Options

This involves the ownership and leasing of a project to provide financial and accounting advantages to corporate users. Lease financings have been used to convey a variety of incentives, such as sales tax exemption on building materials incorporated into buildings owned by a port authority and accounting advantages to the lessee/user of the project. Lease financings have typically been undertaken by port authorities in the categories of capital lease, operating lease, or synthetic lease.